• Algorand price extends its gains on Thursday after rallying near 20% the previous day.
  • Algo insights report shows ALGO’s RWA TVL increased 34.6% in the second half of 2024, while 64.5% of the year’s follower growth on X occurred in the last quarter.
  • On-chain data paints a bullish picture as ALGO’s open interest rises, and the long-to-short ratio is above one.

Algorand (ALGO) price extends its gains and rises to over a one-month high, trading around $0.460 at the time of writing on Thursday after rallying more than 19% the previous day. The Algo insights report shows that ALGO’s Real World Asset (RWA) Total Value Locked (TVL) increased 34.6% in the second half of 2024, while 64.5% of the year’s follower growth on X occurred in the last quarter, signaling an increasing interest in the token in recent months. Additionally, on-chain data paints a bullish picture as ALGO’s open interest rises, and the long-to-short ratio is above one, all hinting at further gains on the horizon.

Algorand price looks promising

Algorand’s price found support above the 61.8% Fibonacci retracement from the recent bullish move (drawn from the November 4 low of $0,105 to the December 3 high of $0,615) on Monday and rallied 27.28% in the next two days, closing above its daily resistance level of $0.423 on Wednesday. At the time of writing on Thursday, it continues to trade higher, around $0.460.

If ALGO continues its upward momentum, it could extend the rally by 30% from its current levels to test its December 3 high of $0.615.

The Relative Strength Index (RSI) on the daily chart reads 64, above its neutral level of 50 and points upwards, indicating bullish momentum. The Moving Average Convergence Divergence (MACD) also shows a bullish crossover on Wednesday, giving a buy signal and suggesting an upward trend.

ALGO/USDT daily chart

ALGO/USDT daily chart

The Algo insights report on Tuesday also projects a bullish outlook for Algorand. According to the report, the TVL in the RWA increased by 34.6% from $57 million to $77 million in the second half of 2024, driven primarily by expanding asset tokenization on Lofty. 

Moreover, Algorand’s social media presence ended 2024 on a particularly strong note. Engagement rates jumped to 7.2% in Q4, significantly outperforming the 4.3% rate in Q1-Q3. Perhaps most notably, 64.5% of the year’s total follower growth for X occurred in Q4, with 13,196 new followers joining the community compared to 7,251 combined in the first three quarters.


Algorand on-chain metrics show positive bias

Looking at ALGO’s Open Interest (OI) further boosts the bullish outlook. Coinglass’s data shows that the futures’ OI in ALGO at exchanges rose from $95.10 million on Tuesday to $156.46 million on Thursday, the highest level since December 9. An increasing OI represents new or additional money entering the market and new buying, which suggests a rally ahead in the Algorand price.

ALGO Open Interest chart. Source: Coinglass

ALGO Open Interest chart. Source: Coinglass

Another bullish sign is Coinglass’s ALGO long-to-short ratio, which reads 1.05, the highest level in over a month. This ratio above one reflects bullish sentiment in the markets as more traders are betting for the ALGO price to rise.

ALGO long-to-short ratio chart. Source: Coinglass

ALGO long-to-short ratio chart. Source: Coinglass


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin recovers slightly as MicroStrategy adds 10,107 BTC and launches STRK

Bitcoin recovers slightly as MicroStrategy adds 10,107 BTC and launches STRK

Bitcoin’s price recovers slightly, trading above $102,000 on Tuesday after reaching a low of $97,777 the previous day. BTC’s recovery was driven by MicroStrategy’s purchase of 10,107 BTC for $1.1 billion and the launch of its convertible preferred stock STRK, available to institutional investors and select retail investors. 

More Bitcoin News
Sui and Ondo Price Forecast: SUI and ONDO bears eye for double-digit crash

Sui and Ondo Price Forecast: SUI and ONDO bears eye for double-digit crash

Sui (SUI) and Ondo (ONDO) prices hover around $3.90 and $1.33 on Tuesday after declining recently. Both altcoins could be poised for a double-digit crash ahead as Sui technical indicators show bearish momentum, while ONDO funding rates are negative.

More Sui News
Ripple expands reach with key licenses in New York and Texas, XRP briefly slips below $3

Ripple expands reach with key licenses in New York and Texas, XRP briefly slips below $3

XRP briefly slipped below $3.00 on Monday following Ripple's announcement that it has obtained Money Transmitter Licenses (MTLs) in New York and Texas, permitting customers in the region to enjoy its services.

More Ripple News
Jupiter Price Forecast: JUP remains firm despite market correction

Jupiter Price Forecast: JUP remains firm despite market correction

Jupiter’s (JUP) price extends its gains, trading around $1.23 and rallying nearly 10% on Tuesday after a 7% rise the previous day. The recent JUP buyback and 3 billion token burn announcement was revealed in its Catstanbul event, further supporting JUP’s bullish outlook. 

More Jupiter News
Bitcoin: BTC holdings of large investors surges as Trump takes the Oval Office

Bitcoin: BTC holdings of large investors surges as Trump takes the Oval Office

Bitcoin (BTC) trades in the green and hovers above $105,000 on Friday after hitting a new all-time high of $109,588 on Monday. CryptoQuant’s weekly report highlights that the demand for BTC from large investors surges as US President Donald Trump takes the Oval Office.

Read full analysis
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

BTC

ETH

XRP